NASDAQ$MTSI

Macom Technology Solutions · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported an increase in revenue and operating income compared to the previous year fiscal third quarter.

MACOM Technology Solutions Holdings, Inc. announced its financial results for the fiscal third quarter ended July 2, 2021. The company reported revenue of $152.6 million, an increase of 11.2% compared to the previous year fiscal third quarter. Net income was $15.0 million, or $0.21 per diluted share, compared to a net loss of $25.0 million in the previous year fiscal third quarter.

  • Revenue was $152.6 million, an increase of 11.2% year-over-year.
  • Gross margin was 57.2%, compared to 51.6% in the previous year fiscal third quarter.
  • Operating income was $23.7 million, compared to $6.5 million in the previous year fiscal third quarter.
  • Net income was $15.0 million, or $0.21 per diluted share, compared to net loss of $25.0 million in the previous year fiscal third quarter.

Headline financials

Total Revenue

$153M

Previous: $137M+11.2%
EPS (adj)

$0.57

Previous: $0.33+72.7%
Capital Expenditures

-$12.9M

Previous: -$12.7M-2.1%
Free Cash Flow

$2.08M

Previous: -$37.6M+105.5%
Net Income

$15M

Previous: -$25M+160.1%
Operating Income

$23.7M

Previous: $6.5M+264.2%
Gross Profit

$87.3M

Previous: $70.9M+23.1%
Cash & Equivalents

$144M

Previous: $132M+9.3%
Total Assets

$1.1B

Previous: $1.12B-1.9%
Stock-Based Comp

$8.14M

Previous: $8.5M-4.2%

Revenue & EPS history

Macom · Revenue · Quarterly

$153M

Q3 2021+11.2%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

For the fiscal fourth quarter ending October 1, 2021, MACOM expects revenue to be in the range of $153 million to $157 million. Adjusted gross margin is expected to be between 59.5% and 61.5%, and adjusted earnings per share is expected to be between $0.56 and $0.60 on an anticipated 71.3 million fully diluted shares outstanding.

Tailwinds

  • Revenue to be in the range of $153 million to $157 million.
  • Adjusted gross margin is expected to be between 59.5% and 61.5%.
  • Adjusted earnings per share is expected to be between $0.56 and $0.60.
  • Anticipated 71.3 million fully diluted shares outstanding.
  • Focused on engineering excellence and execution.

Headwinds

  • Risks related to any weakening of economic conditions, including as a result of the COVID-19 pandemic.
  • Dependence on a limited number of customers.
  • Ability to develop new products and achieve market acceptance of those products.
  • Component shortages or other disruptions in our supply chain, including as a result of the COVID-19 pandemic.
  • Changes in fair values of the common stock warrant liability, which are excluded from our adjusted net income and are neither deductible nor taxable for tax purposes, losses or gains associated with our equity method investment in a private business, income taxed in foreign jurisdictions at generally lower tax rates, intangible impairments, research and development tax credits and merger expenses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.6%

Avg return

Earnings day

+3.0%

Avg return

5 days after

+5.6%

Avg return

30 days after

55%

34 / 62 earnings

Positive

+24.0%

Q2 2018

Best reaction

-32.8%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+11.2%+17.0%+11.4%
Q1 2026+5.9%+7.2%-3.5%
Q4 2025+11.4%+13.6%+23.0%
Q2 2025+5.5%+8.7%+10.3%
Q1 2025-4.6%-9.9%-24.3%
Q4 2024+13.1%+8.2%+14.1%
Q3 2024-3.8%-3.7%+8.2%
Q2 2024+3.8%+3.9%+2.0%
Q1 2024-6.9%-7.3%+7.5%
Q4 2023+5.6%+12.2%+18.3%
Q3 2023+10.9%+12.7%+23.6%
Q2 2023-1.1%-5.7%+7.3%
Q1 2023-3.7%+0.1%+4.0%
Q4 2022+12.4%+15.6%+19.7%
Q3 2022+6.2%+8.0%+5.9%
Q2 2022-0.9%+2.9%+6.6%
Q1 2022-4.7%-2.8%-4.0%
Q4 2021-0.3%+0.7%+0.6%
Q3 2021+3.0%+1.7%+3.7%
Q2 2021-8.1%-12.5%-3.9%
Q1 2021+1.6%+13.4%+15.0%
Q4 2020+8.1%+3.4%+19.7%
Q3 2020+19.6%+17.1%+0.6%
Q2 2020+15.2%+8.9%+19.2%
Q1 2020+12.9%+4.5%-11.3%
Q4 2019+13.0%+10.5%+12.4%
Q3 2019-1.1%+0.4%+0.1%
Q2 2019+18.7%+15.2%+13.8%
Q1 2019-19.3%-13.0%-6.9%
Q4 2018+20.6%+21.0%+6.4%
Q3 2018-4.8%-0.7%+4.6%
Q2 2018+24.0%+29.1%+35.7%
Q1 2018-32.8%-33.8%-20.8%
Q4 2017-17.9%-10.2%-13.3%
Q3 2017-24.9%-30.4%-24.8%
Q2 2017-6.8%-9.5%+10.9%
Q1 2017-5.4%-1.9%-5.6%
Q4 2016+8.4%+15.1%+21.7%
Q3 2016+6.2%+6.1%+11.2%
Q2 2016+7.7%
Q1 2016-1.9%
Q4 2015+4.0%
Q3 2015+11.3%
Q2 2015+4.3%
Q1 2015-8.0%
Q4 2014+8.6%
Q3 2014-3.0%
Q2 2014+1.7%
Q1 2014+1.4%
Q4 2013-7.6%
Q3 2013+4.6%
Q2 2013-2.4%
Q1 2012-1.7%
Q1 2013+1.4%
Q4 2010+5.2%
Q1 2011+5.2%
Q4 2012+1.4%
Q3 2012-6.6%
Q3 2011-6.6%
Q2 2011-4.0%
Q2 2012-4.0%
Q4 2011-4.0%

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